Starbucks closed about 250 company-operated coffeehouses in North America in September, and sales at its established U.S. stores still rose 7.7% in the July to September quarter, according to the fourth-quarter report it filed Thursday, October 29. Most of that growth came from customers spending more per visit.
More spent per visit, slower growth in visits
| U.S. | Apr.-June | July-Sept. |
|---|---|---|
| Sales | Up 7.9% | Up 7.7% |
| Visits | Up 4.2% | Up 2.4% |
| Average ticket | Up 3.6% | Up 5.2% |
In the spring quarter, as its third-quarter report shows, more of the growth came from extra visits; in the summer quarter, more of it came from bigger orders. For North America, Starbucks credits the higher ticket to product mix, customers adding food, pricing and more delivery orders.
Fewer U.S. stores
The company said the September closures hit North American coffeehouses "that do not deliver the coffeehouse experience and financial performance expected of the brand." The U.S. count fell to 16,781 at the end of September from 16,933 at the end of June, while the worldwide total rose to 41,607 because of openings elsewhere.
The rest of the results
Total revenue for the quarter fell 4% to $9.1 billion because Starbucks turned its retail business in China into a licensed joint venture earlier in the year, so it now books licensing income there instead of store sales. Adjusted earnings per share rose 54% to $0.80, and the North America operating margin climbed to 12.3% from 4.5% a year earlier, when restructuring costs weighed on results. Revenue for the full fiscal year rose 2% to $37.9 billion.
What Starbucks expects next year
Its fiscal 2027 runs 53 weeks instead of the usual 52. Starbucks forecasts:
| Measure | Fiscal 2027 forecast |
|---|---|
| Total revenue | Down about 1%, including about $700 million from the extra week |
| North America comparable sales | Up about 4% |
| Adjusted earnings per share | $3.15 to $3.25 |
| Net new coffeehouses | About 1,200 worldwide, led by international markets |
The board declared a quarterly dividend of $0.63 a share, payable November 27, and the company plans to resume buying back its own stock in fiscal 2027.
